Connecticut’s unemployment rate decreased one-tenth of a percentage point in December 2014 to 6.4%, seasonally adjusted, according to results based from the recent residential household survey (Current Population Survey). This is lower by a full percentage point from the December 2013 unemployment rate of 7.4%. The number of unemployed in the state has declined by 15,007 over the year to 121,406. The monthly labor force estimates for the state continued to expand briskly in December (7,381, 0.4%) and has now increased by 60,254 (3.3%, considered statistically significant) labor force entrants over the year.

“Connecticut finishes 2014 on an encouraging note with over 80% of nonfarm jobs recovered from the Great Recession - almost 94% for the private sector,” said Andy Condon, Director of the Office of Research. “Employment gains were widespread across most industries and regions though wages are slower to recover. We look forward to the annual benchmark revision in March to see if this level of growth holds up when more complete data becomes available.”

Nonfarm Jobs: Initial nonfarm employment estimates show Connecticut added 4,800 (0.28%) jobs in December 2014 (seasonally adjusted). Six of the ten major industry supersectors added jobs last month. This is the fourth monthly nonfarm employment gain in a row since an August decline (-1,200) and is the tenth monthly job gain in 2014. Year-to-date job gains in 2014 now total 26,700 (1.61%, 2,225 per month) compared to last year’s 18,400 (about 1,533 per month) before the upcoming annual benchmark revisions that are pending before the next belated release in March.

Recession Recovery: Connecticut has now recovered 96,300 positions, or 80.9% of the 119,100 seasonally adjusted total nonfarm jobs that were lost in the state during the March 2008 - February 2010 employment recession (pre-benchmark).  Connecticut’s jobs recovery is now 58 months old and is averaging approximately 1,660 jobs per month since February 2010.  The private sector has recovered employment at a faster pace and has now recovered 105,200 (93.9%) of the 112,000 private sector jobs that were lost during the same recessionary downturn (about a 1,814 per month pace).  At 1,690,200 overall nonfarm jobs for December 2014, the state needs to reach the 1,713,000 level to start a bona fide nonfarm employment expansion. This will require an additional 22,800 nonfarm jobs.  A total of just 6,800 additional private sector positions are needed to have a fully recovered private sector. The government supersector (Indian casino jobs on reservation are measured in local government) has continued to lose net jobs (-8,900) throughout the overall nonfarm employment recovery.

Labor Market Areas (LMAs): The December 2014 preliminary nonfarm job numbers show that four of the six major Connecticut Labor Market Areas (Bureau of Labor Statistics-recognized LMAs) experienced job gains while two labor markets were unchanged (Bridgeport-Stamford-Norwalk LMA and Norwich-New London).  The Hartford LMA (2,200, 0.4%) posted the largest regional job market gain. Smaller job gains were seen in New Haven (800, 0.3%), Danbury (500, 0.7%), and Waterbury (300, 0.5%).  All Connecticut BLS-recognized LMAs are positive now over the year.  Note: The major Connecticut LMAs are estimated and seasonally adjusted independently from the statewide numbers by the BLS and cover about 90% of the nonfarm employment in the state, so they will not fully sum to the statewide total.

The state’s private sector gained 3,900 (0.27%) nonfarm jobs in December 2014 and is now higher by a healthy 25,700 positions (1.80%) since last December 2013.  The government supersector (900, 0.38% OTM) was also positive in December and is now adding some positions (1,000, 0.42%) over the year.

The six major industry supersectors that increased jobs from the business survey in December were led by leisure and hospitality (2,100, 1.4%).  Strong gains are coming from the accommodation and food services (1,500, 1.2%) portion of this supersector.  A surprisingly solid gain from the manufacturing supersector (1,200, 0.7%) was also apparent.  Durable goods manufacturers (1,300, 1.0%) were the major contributor.  Education and health services (1,200, 0.4%) posted a strong monthly gain driven by the health services (1,300, 0.5%) component.  The government (900, 0.4%) supersector also was a job gainer last month with federal, state, and local government entities all contributing.  The information supersector (400, 1.3%) and the other services (400, 0.6%) supersector added a similar number of jobs in December.

The job losses in the four declining supersectors in December were all below a thousand and were led lower by the combined construction and mining (-600, -1.0%) supersector.  The trade, transportation & utilities (TTU) (-500, -0.2%) supersector was also down in December 2014 with wholesale trade (-500, -0.8%) and transportation and utilities (-1,100, -2.0%) lower, while the retail trade portion still added positions (1,100, 0.6%).  Smaller job losses came from the professional, scientific, and technical (-200, -0.1%) supersector and the financial activities supersector (-100, -0.1%).  The financial activities supersector (-2,400, -1.8%) is now the only industry supersector to have lost jobs over the year.  TTU remains the best growing supersector over the year (7,700, 2.6%) driven by retail trade (6,500, 3.5%).

Connecticut’s Ten Industry Supersector Performance (YTD December 2014: 9 up, 1 down, before revisions)

1.)    Trade, Transportation, and Utilities (7,700, 2.6%)           6.) Government (1,000, 0.4%)

2.)    Leisure and Hospitality (6,400, 4.2%)                                7.) Construction and Mining (800, 1.4%)

3.)    Education and Health Services (5,600, 1.7%)                  8.) Other Services (700, 1.1%)

4.)    Professional and Business Services (4,800, 2.3%)        9.) Information (200, 0.6%)

5.)    Manufacturing (1,900, 1.2%)                                               10.) Financial Activities (-2,400, -1.8%) 

Annual Average Connecticut Nonfarm Employment ~ (based on 12 months of not seasonally adjusted data, pre benchmark)

2014 ~ 1,669,700 (15,000, 0.91%)

2013 ~ 1,654,700 (14,300, 0.87%)

2012 ~ 1,640,400 (15,300, 0.94%)

2011 ~ 1,625,100 (17,100, 1.06%)

2010 ~ 1,608,000 (-18,600, -1.14%)

2009 ~ 1,626,600 (-72,400, -4.26%)